To test debt consolidation, compare 2 numbers: what you pay each month, and the total interest left. The table shows 3 sample debts that add up to Rs. 2.35 lakh. The card figure assumes you pay the 5% minimum due each month.
| Debt | Balance (Rs.) | Yearly rate | Paid each month (Rs.) | Interest left to pay (Rs.) |
|---|
| Credit card balance | 1,10,000 | 42% | 5,500 (5% minimum due) | 82,488 over 35 months |
| App loan | 55,000 | 30% | 5,362 over 12 months | 9,342 |
| Consumer durable loan | 70,000 | 24% | 4,669 over 18 months | 14,045 |
| Total | 2,35,000 | 33.8% (weighted) | 15,531 | 1,05,875 |
Last updated: 27th October, 2026
These 3 debts take Rs. 15,531 a month. The card alone runs for nearly 3 years at the minimum payment. If you take on no new debt, you would still pay Rs. 1,05,875 in interest.
Now compare that with one loan. Then add the processing fee to the interest on one new loan. The fee comes out of the loan amount, so plan for it when you choose how much to borrow. If the new total is lower, debt consolidation saves you money.
Deepa's three debts
Deepa, 34, is a salaried staff nurse in Kochi. Her monthly salary is Rs. 58,000, and her CIBIL score is 741. A family wedding and a broken fridge left her with the 3 debts in the table. She chose debt consolidation with one loan of Rs. 2,35,000 at an illustrative 14.75% per annum and compared 2 tenures.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. Here P = Rs. 2,35,000, R = 14.75 ÷ 1,200 and N = months.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 24 months (2 years) | 11,366 | 37,795 | 19.6 |
| 36 months (3 years) | 8,118 | 57,234 | 14.0 |
Last updated: 27th October, 2026
Over 24 months, debt consolidation cuts her monthly outflow from Rs. 15,531 to Rs. 11,366. Her interest falls from Rs. 1,05,875 to Rs. 37,795. A processing fee of up to Rs. 9,706 still leaves a saving of about Rs. 58,000. A 36-month term would shave Rs. 3,248 off the EMI while adding Rs. 19,439 of interest. Deepa chose 24 months.
What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.
Planning debt consolidation? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → funds may be credited within 24 hours* of approval, subject to verification.
